Foreign exchange trading is an exciting option for people who are interested in making money with day trades. It’s a volatile market, which means there are a lot of opportunities out there.Of course, those opportunities also come with a lot of risks. Make a mistake and you could lose some money.
Forex is also more accessible than many markets.
1) Learn the currency exchange market inside and out
The more you learn about the market the better positioned you’ll be to take advantage of the ebbs and flows of currency exchange trading. You need to learn about currency pairs and how to make the most of them.
Read books, watch videos, do whatever you can to understand.
Then, head over to a platform like IQ Broker. IQ Broker will let you set up a $10,000 practice account where you can simulate trades and test your strategy before you start risking real money on trades.
2) Create a strategy and refine it
Successful Forex traders are obsessive about data. They document what they do and they document the results. This lets them find out what works well for them. It’s a good idea to mark the assumptions behind each move you make, as well.
Over time they use this data to help them develop a successful, reliable trading strategy that delivers more or less consistent results.
3) Avoid emotional trading
The best strategy in the world won’t keep you from losing money some days. There will also be exhilarating days: days where you do really well. Either way you’ll be tempted to break from your strategy, either because you’re frustrated and want something to work or because you want the winning streak to continue.
Yet deviating from the data because it feels good to do so is a good way to lose massive amounts of money.
If you instead stop when your strategy says it’s time to stop, win or lose, you’ll do better overall.
Get Your Mindset Right
As a beginner, you shouldn’t be overly focused on making lots of money. Instead, you need to be focusing on building a new skill and growing as a trader. Try to challenge yourself to come out a little bit more ahead every day. Try to become more confident, learning while doing.
Eventually, you’ll become a seasoned Forex trader, and may even be able to make your living doing it!